How hackers target customers through digital identities

Protecting customers' digital identities is essential.

The financial consequences are evident, with government officials' impersonation scams leading the charts with average losses of $116,000, closely trailed by investment scams at $60,000². Moreover, the emotional toll is substantial, as highlighted by a McKinsey survey revealing that 70% of banking customers felt anxiety, stress, or frustration upon being warned about potential fraud³. The figures from the Singapore Police Force further emphasise the severity, showing a consistent rise in losses, with victims losing S$651 million in 2023⁴.

Safeguarding customers' digital identities goes beyond protecting finances. It is also about preserving trust, loyalty, and emotional well-being in an increasingly digital world.

Telco data is a shield for combating identity scams across the banking, finance, and retail sectors. With the help of telco data, businesses can swiftly detect suspicious activities, authenticate user identities, and prevent fraudulent transactions in real-time. Additionally, telco data helps identify anomalies in user behaviour, such as unusual login locations, unauthorised access attempts, or atypical transaction patterns, enabling immediate intervention to prevent fraudulent activities before they escalate.

When bad actors attempt login, they can deceive victims into approving authentication through social engineering tactics. This poses a significant risk to consumers as current Multifactor Authentication processes are susceptible to social engineering manipulation.

However, solutions like SingVerify offer a potent defence against such threats, empowering enterprises to effectively combat phishing and malware app scams. SingVerify's suite of solutions authenticates digital identities against telco data, a pioneering move in Singapore. Through various APIs, SingVerify grants on-demand and secure access to telco data, enabling telco networks to authenticate digital identities directly.

SingVerify sets itself apart from traditional methods by augmenting multifactor authentication using telco data. With SingVerify, service providers can validate customers' identities, matching their phone numbers against real-time telco data across various services like banking and social media. This silent authentication in the background significantly reduces opportunities for scammers to exploit two-factor or multifactor authentication processes, ensuring a safer digital environment for all users.

SingVerify ensures seamless user authentication while safeguarding digital identities. Leveraging real-time telco data, it replaces vulnerable methods like OTPs with silent network authentication, which verifies users in the background without interrupting their experience.

Additionally, SingVerify is designed to align with the GSMA Open Gateway framework, a globally recognised initiative. This framework facilitates universal access, swift deployment, and seamless integration across diverse mobile networks. As a result, a broader spectrum of service providers and businesses can leverage SingVerify’s benefits.

Explore how the suite of SingVerify solutions can protect your business

Number Verify API: traditional MFA processes are vulnerable to social engineering attacks. Leveraging SIM cards and SIM-based data as secure authentication sources, Number Verify API conducts silent network authentication in real time, preventing scammers from hijacking 2FA or MFA processes.

Device Location API: when malicious actors attempt to access an employee's device, they often manipulate the user to approve authentication through social engineering tactics. SingVerify’s Device Location API verifies the device's location by triangulating real-time device location data with cell tower information, bolstering security measures.

Scam Sniffer API: utilising Scam Sniffer’s in-house analytical models, you can compile a blacklist of potential scammers. This list can be integrated with other databases. When a suspicious or high-value transaction occurs, the API can provide insights on whether the end-user has interacted with potential scammers, enabling proactive fraud prevention measures.

All-in-one trading platform, Tiger Brokers, and mobile authentication provider, IPification have integrated SingVerify into their security frameworks, enhancing authentication measures and streamlining verification processes.

Felix Huang, Head of Global Solutions at Tiger Brokers, emphasised the importance of such enhancements in ensuring robust client service experiences. Stefan Kostic, CEO of IPification, highlighted the global surge in digital fraud and the necessity for frictionless authentication solutions like SingVerify to safeguard users⁵.

This partnership signifies a commitment to bolstering security and user experiences for businesses and customers in Singapore.

Combatting scams is a collective effort from governments, businesses, and citizens. Businesses must prioritise employee training, starting with selecting a reliable tech provider. Partnering with providers that offer ongoing support, seamless integration, and compliance with regulations can help strengthen defences against fraud.

Secure digital identities with Singtel.

References:

2. What is social engineering, IBM
4. Singapore Police Force News Release - MID-YEAR SCAMS AND CYBERCRIME STATISTICS 2023
6. McKinsey, A new approach to fighting fraud while enhancing customer experience. 2022
8. The Diplomat, Is Singapore Doing Enough to Safeguard Itself Against Cybersecurity Attacks and Scams?, 2024
10. Singtel launches authentication solution, SingVerify, to curb rising scams, News Release, 2024